TOKYO (MNI) – The Bank of Japan on Thursday left its overview of
regional economies for April from three months ago, based on reports
from its branch managers who met here for a one-day quarterly meeting.

“All of the nine regions in Japan maintained the view similar to
the January 2010 report that their respective economies had picked up,
although there remained differences in the pace and extend of the
recovery,” the BOJ said in the latest report.

In the January report, the BOJ said, “According to reports from
each of the nine regions in Japan, the economy had picked up in all
regions, although regional differences in the pace and extent of the
recovery remained.”

The latest report said, “Compared with the assessment in January
2010, two regions (Shikoku in the west and the southern most region of
Kyushu-Okinawa) maintained their assessments, while the other seven
regions (Hokkaido and Tohoku in the north, Hokuriku, Kanto-Koshinetsu
and Tokai in central Japan, and Kinki and Chugoku in the west) reported
an upward change in the economic trend, such as an increase in signs of
improvement or acceleration in the pace of improvement I the economy.”

It also said, “However, most regions continued to point either to
the low level of economic activity or to differences in developments
among regions, industries, of firms.”

In January, the BOJ said, “Compared with the assessment in October
2009, five (Hokkaido, Tohoku, Hokuriku, Chugoku and Shikoku) maintained
their assessments, while four regions (Kanto-Koshinetsu, Tokai, Kinki
and Kyushu-Okinawa) reported an upward change in the economic trend.”

The report helps the BOJ’s policymakers assess developments in
Japan’s economy ahead of the next policy-setting meeting scheduled on
Apr. 30.

Today’s report is consistent with the BOJ’s overall economic
assessment that Japan’s economy has been picking up and the improvement
of business sentiment was confirmed in the March Tankan survey.

Managers from the BOJ’s 32 domestic branches and two general
managers from the U.S. and Europe gathered to discuss economic and
financial conditions at the bank’s head office.

BOJ Governor Masaaki Shirakawa earlier in the day stressed that it
is crucial for Japan to overcome deflation and achieve self-sustainable
economic growth with price stability.

To this effect, Shirakawa repeated, the BOJ will maintain the
extremely accommodative financial environment.

He also said that the pace of Japan’s economic recovery is likely
to be gradual.

hinoue@marketnews.com
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